 The Capital Gains Tax: A Curse but Also a Blessing for Venture Capital InvestmentCarolin Bock and Martin Watzinger Journal of Small Business Management, 2019, vol. 57, issue 4, 1200-1231 Abstract: Our study analyzes the effect of the capital gains tax on the individual investment decisions of venture capitalists. By doing so, we are able to study the decisions for a sample of 61,558 funding rounds in 32 countries from 2000 to 2012. Our results support the predictions of the theoretical model that higher capital gains tax rates are associated with fewer start‐ups financed and a lower probability of receiving follow‐up funding. However, the results concerning the effect on the probability of success of start‐ups show that a higher tax burden is associated with a higher probability of eventual start‐up success. Date: 2019 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:ujbmxx:v:57:y:2019:i:4:p:1200-1231 Ordering information: This journal article can be ordered from DOI: 10.1111/jsbm.12373 Access Statistics for this article Journal of Small Business Management is currently edited by Eric Liguori More articles in Journal of Small Business Management from Taylor & Francis Journals |
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